Where Most SMEs Go Wrong with Fractional Experts

Working with fractional experts has become a crucial strategy for small and medium-sized enterprises (SMEs) looking to scale efficiently. Fractional team members, like fractional CFOs, can offer flexibility, cost savings, and access to specialist expertise without the financial burden of hiring full-time staff. Yet, many SMEs have a skewed perspective of working with fractional team members, or do not fully utilise the opportunities available to them. 

Instead of leveraging the growing fractional worker market as a growth enabler, they make common mistakes that lead to inefficiencies, poor results, and missed opportunities. If your business is considering working with fractional staff but is not sure you’ll see the desired impact, you might be falling into these traps.

Here are the most common mistakes SMEs make when taking on fractional experts - and how to fix them.

Many SMEs aren’t utilising fractional team members, despite the benefits they can add to their business. Image by The Standing Desk for Unsplash.

Viewing fractional team members as a short-term fix

Many SMEs approach fractional work as a stopgap measure to address immediate problems rather than as a strategic investment. While fractional professionals can certainly fill short-term gaps, treating them purely as a quick fix can lead to several issues.

A lack of continuity is one of the biggest downsides of short-term engagements. When businesses frequently change fractional professionals, they spend time and resources on repeated onboarding and training, which ultimately reduces efficiency. Instead of building long-term relationships that lead to deeper understanding and better collaboration, they end up in a cycle of hiring and re-hiring, which can be both costly and disruptive.

Additionally, many businesses mistakenly believe that fractional work is purely a cost-saving measure rather than a way to drive strategic value. While it’s true that hiring fractional experts will reduce expenses (by saving on full-time salaries), its greatest strength lies in its ability to bring in expertise and efficiency that an in-house team may not possess.

Only using fractional experts for junior tasks

A common misconception is that fractional work is only suitable for administrative and low-value tasks. While virtual assistants, data entry professionals, and customer service reps are frequently used in a fractional capacity, many SMEs overlook the potential of engaging fractional executive-level roles.

High-level business functions often require expertise that SMEs might struggle to afford in-house. However, by hiring fractional strategic roles like a CFO, marketing director, or HR leader, SMEs can access high-quality leadership without committing to a full-time salary. This is particularly beneficial for growing businesses that need strategic guidance but do not yet have the resources to hire senior executives internally.

For example, a fractional CFO can provide strategic financial planning, cash flow management, and budgeting support, helping SMEs navigate growth and financial challenges with expert insights. Similarly, a fractional Chief Marketing Officer (CMO) can drive brand positioning, oversee campaigns, and build a marketing strategy that aligns with long-term business goals.

Lack of integration with the core team

Many SMEs treat fractional professionals as external entities rather than part of their business, leading to poor communication and misalignment with company goals.

One of the biggest challenges in working with fractional experts is ensuring they are properly integrated with the internal team. When they work in isolation, they may struggle to understand the company's culture, objectives, and workflow - if not communicated effectively. This can lead to inefficiencies, duplicated efforts, and a lack of cohesion between fractional and in-house work.

Successful fractional work requires a mindset shift. Businesses should view fractional professionals as extensions of their team rather than separate contractors. This means involving them in regular meetings, ensuring they have access to necessary resources, and keeping them informed about broader company initiatives.

At The Finance People, we believe cultural fit is a priority when hiring a fractional CFO and we’ll work with you to ensure you feel comfortable with your new expert. 

Underestimating the importance of clear communication

Miscommunication is one of the biggest reasons fractional work arrangements fail. Many SMEs assume fractional professionals will intuitively understand their needs, which leads to misaligned expectations.

One of the biggest mistakes businesses make is not involving their fractional team members more. While your fractional expert may work on a part-time basis, they still require the same level of clarity and insight that your core team has to allow them to fulfil the role effectively. This results in frustration on both sides and can undermine the relationship.

Fractional team members can be a game-changer for SMEs. Image by Rodeo Project Management Software for Unsplash.

Hire a fractional CFO with The Finance People

Working with fractional experts can be a game-changer for SMEs - but only when approached strategically. By engaging the right fractional professionals, businesses can access high-level expertise without the financial burden of full-time hires. However, success depends on choosing the right partners, fostering long-term relationships, and ensuring seamless integration with the core team.

One of the most impactful fractional hires a business can make is a fractional CFO. Financial leadership is critical for any growing business, yet many SMEs struggle to justify the expense of an in-house CFO. This is where The Finance People can help.

At The Finance People, we specialise in providing SMEs with experienced fractional CFOs who bring strategic financial oversight, cash flow management, and growth planning expertise—without the cost of a full-time executive. Our fractional CFOs work closely with business owners to provide tailored financial guidance, helping them make informed decisions that drive profitability and long-term success.

If your business is facing challenges with financial forecasting, investment planning, or cost management, a fractional CFO could be the solution you need. Get in touch with The Finance People today to explore how our expert CFOs can support your business and help you scale with confidence.